RIL Takes Over Infotel

Infotel's BWA spectrum success proves too tempting for RIL as it looks to be in vanguard of India's mobile broadband revolution

June 11, 2010

1 Min Read

MUMBAI -- Reliance Industries Limited (RIL) today announced that ithas entered into an agreement to acquire a substantial stake in Infotel BroadbandServices (P) Ltd, which has emerged as a successful bidder in all the 22 circles ofthe auction for Broadband Wireless Access (BWA) Spectrum conducted by the DoT.RIL will invest about Rs 4,800 crore by way of subscription to fresh equity capital atpar to be issued by Infotel Broadband. Post this investment, RIL will own 95% of theequity and Infotel Broadband will be a subsidiary of Reliance Industries Limited.RIL sees the broadband opportunity as a new frontier of knowledge economy inwhich it can take a leadership position and provide India with an opportunity to be inthe forefront among the countries providing world-class 4G network and services. Asingle 20 MHz TDD spectrum when used with LTE (Long Term Evolution) has thepotential of providing greater capacity when compared to existing communicationinfrastructure in the country.

India has witnessed substantial growth in the mobile subscriber base over the lastdecade. This provides a ready platform for offering various data services which iscurrently at a very nascent stage. Diverse data services and rich contents havesignificantly boosted data traffic in developed and other emerging markets. Datacommunication volume per user has been growing exponentially in the last fewyears, with the spread of advanced services, and a richer line-up of contents.

Commenting on the initiative, Mr. Mukesh Ambani, Chairman and Managing Directorof Reliance Industries Limited said “We see this as the next wave of value creationopportunity in the wireless broadband space. We believe this will pole-vault India’seconomy into the digital world at an accelerated pace while creating next generationtools that will enhance productivity and create world-class consumer experiences.”

Reliance Industries Ltd. (RIL)

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